Volkswagen’s 2.0-liter diesel is the best small-displacement compression-ignition engine in the segment, and not just because it’s the only small-displacement turbo-diesel in the segment. Even when others begin making their appearance in affordable sedans—the new Mazda 6, for example—it’s a safe bet that VW’s offering, with its many years of development, will still be a strong player. (The company also has a new diesel-engine architecture, dubbed EA288. It will be used in the 2015 Golf TDI.)

Predictably, the test crew was seduced by the little diesel’s mini riptide of torque, which comes on early and peaks at 1750 rpm, making discreet, refined diesel noises in the process. There’s a faint echo of old-time diesel clatter at startup, but in general, this engine is very quiet, and the TDI was in fact the quietest of all four Jettas at a steady 70 mph.

One tester observed that it “thrums like the ‘good ship Lollipop.’” We’re not sure what that means, but the 2.0-liter diesel’s torque is a handy tool in urban traffic; the TDI is quick when the light turns green and quick across the intersection. Backing up the point, it proved quicker in our testing than all but the GLI up to about 30 mph.

The TDI’s other dynamic strong suit is ride quality, sharing best-in-test honors with the hybrid. More surprising, considering the TDI had the most weight over its front axle in the group (61.1 percent) and the beam-axle rear suspension, was that it scored well in subjective handling, tying the hybrid and trailing only the GLI.

Although it included a nav system, power sunroof, and other luxo features, the TDI’s interior and instrumentation had a minimalistic, simple look that seemed out of step with its $28,160 as-tested price. This in turn resulted in the lowest point total in the vehicle-scoring category. On the other hand, with the exception of the hybrid’s attractive readouts, there were far more interior similarities in this group than there were distinctions.

Diesels are all about efficiency, and that’s where the TDI stands out in this foursome. Given the hybrid’s presence, it might even stand out more than Volkswagen might like. According to the EPA, the TDI should be good for 30 mpg in the city, 42 on the highway, and 34 combined. (Those results are with the manual or the quick-shifting DSG automatic, which was the transmission in our car.) We logged an impressive 39 mpg, which was—and this is significant—better than we achieved with the hybrid.

Our test car was at the top of the TDI price range. The line starts at $23,785 for a manual-transmission model, which makes diesel thrift a lot more attractive. Of course, there’s always a catch: As of this writing, fueleconomy.gov states that unleaded regular averages $3.54 per gallon nationally and diesel $3.94.

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